Other Things Equal, Under a Floating Exchange Rate System, an Increase

Multiple Choice

Other things equal, under a floating exchange rate system, an increase in U.S.imports of Japanese goods will cause a demand for Japanese yen to

A) increase, inducing a depreciation in the yen.
B) decrease, inducing a depreciation in the yen.
C) increase, inducing an appreciation in the yen.
D) decrease, inducing an appreciation in the yen.